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UK Data Strong – No Impact On Sterling

Sterling edged lower for a fifth consecutive day as a resurgent dollar and mounting concerns over Brexit negotiations sapped demand for the British currency.

An overnight bounce in the pound after a report that the European Union could offer new guarantees to Britain to win London’s support for a solution aimed at avoiding a hard Irish border after Brexit faded yesterday as investors focused on the spreading selloff in emerging markets.

The pound has weakened after hitting a near one-month high at $1.3043 at the end of August on weak economic data, doubts over Prime Minister Theresa May’s leadership and opposition from the European Union to Britain’s proposals for exiting the bloc.

Data this week has also weighed on sterling with a survey showing weaker than expected growth in Britain’s construction sector in August also hurting demand.

Services PMI was due this morning. The reading came in stronger than expectations rising to 54.3 form an expected 53.9

However, this had no impact whatsoever on the value of Sterling – this is a clear indicator than Sterling price is being driven by Brexit and nothing else.

British voters would vote 59-41 to stay in the European Union if given the option after a six-point swing away from Brexit, an opinion poll showed on Wednesday, the highest recorded support for EU membership in such a survey since the 2016 referendum.

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